the butterfly effect of the restrictions in China ready to blow on the world economy – Liberation

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–Factories closed, trucks blocked, boats docked… The return of the epidemic to the Asian country is causing a cascade of problems in the production and circulation of goods used in Europe and elsewhere.–

A mirror. While economic activity in China has been struggling for several months, the epidemic figures are clearly on the rise. The “zero Covid” strategy, from which President Xi Jinping does not seem to want to deviate, in order to prevent the circulation of the virus as much as possible, is now leading to traffic restrictions and business closures in several cities of the country. So much so that the delays caused by the seizing up of freight and industry are worrying the whole world, whether in terms of supplies but also for the evolution of prices. Especially since the exchanges were still far from having regained their pre-Covid fluidity. Overview of some questions that arise about this crisis that is likely to be long-lasting.

What is happening in Chinese industry?

The “zero Covid” strategy leads to more or less strict confinements in strategic cities and regions of the country: in the province of Jilin, near North Korea, but also in Shanghai and Shenzhen, in the South, two megalopolises which alone represent more than 16% of Chinese exports. State-of-the-art technology…

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